CoastFIRE
Save aggressively now, coast to retirement later
What is CoastFIRE?
CoastFIRE is a financial strategy where you save and invest aggressively early in your career until you reach a point where your investments will grow to support your retirement without additional contributions. Once you hit your CoastFIRE number, you can "coast" - working less stressful jobs, pursuing passion projects, or taking career breaks - knowing your retirement is secured.
Key Benefits:
- Greater career flexibility and work-life balance
- Reduced financial stress and burnout
- Ability to pursue lower-paying but more fulfilling work
- Freedom to take extended breaks or sabbaticals
- Security knowing retirement is funded
How It Works:
The CoastFIRE number is the amount you need saved today that will grow to your retirement goal by your target retirement age, assuming a given rate of return.
Example: If you're 30 and want $1M at 60, with a 7% annual return, your CoastFIRE number is approximately $131K. Once you have that saved, compound interest does the rest!
Getting There:
- Calculate your retirement needs
- Determine your CoastFIRE number based on age and expected returns
- Save aggressively in your high-earning years
- Invest in low-cost index funds or diversified portfolio
- Once reached, transition to covering living expenses only